By Nasir Mehmood,NasirMehmood
Copyright asalmedia
The Pakistan Stock Exchange (PSX) achieved a new historic milestone on Tuesday, with its benchmark KSE 100 index soaring past the 166,000-point mark for the first time ever. The significant surge reflects growing investor optimism and confidence in the nation’s economic outlook.
The hundred index reached an intraday peak of 166,556.29 points, marking a substantial gain of 2,708.61 points or 1.65 percent. Even at its lowest point of the day, 164,208.33, the index still represented an increase of 360.65 points, or 0.22 percent, from the previous close.
This latest record extends a remarkable streak, marking the third consecutive day the benchmark index has set a new all-time high. On Monday, the KSE 100 index had climbed to 163,847 points, driven by aggressive buying from local mutual funds and institutional investors.
Analysts attribute the sustained upward momentum to increasing confidence within the trade and business community regarding the government’s economic policies. Samiullah Tariq, head of research and development at Pak Kuwait Investment Company Ltd, told Dawn.com, “Strong corporate results and additional liquidity in the market, with a preference for equities, are pushing the market higher.”
Earlier in the week, the stock market had already crossed the 162,000-point threshold, buoyed by a series of positive geopolitical and economic developments. These include the signing of a massive 1.275 trillion Pakistani rupee financing facility with 18 commercial banks, aimed at tackling the persistent circular debt in the power sector. Furthermore, a strategic defense agreement with Saudi Arabia has raised hopes for enhanced bilateral trade and financial support.
Yousuf M. Farooq, director of research at Chase Securities, described the market as “firmly in its optimism phase,” bolstered by signs of an economic recovery and an improving geopolitical news flow. He added, “The rally is being powered by fresh retail participation alongside sustained mutual fund inflows, lifting breadth and turnover.” Awais Ashraf, director of research at AKD Securities, highlighted investor optimism regarding a successful review by the International Monetary Fund (IMF) and potential foreign direct investment, citing improved relations with the United States and Saudi Arabia.
As the government enters a crucial stage of negotiations with the IMF, market participants remain hopeful that progress in the review will further strengthen investor confidence. However, some analysts acknowledge lingering concerns about the ongoing review’s impact on Pakistan’s fiscal stability, noting that achieving targets set by the IMF remains a challenging task.
